ISLAMABAD, FEB 28 (DNA) – Federal government has raised the petroleum prices in Pakistan over the recommendations of OGRA.

The prices of high-speed diesel (HSD) and petrol for March increased by almost Rs7 and Rs4 per litre on Wednesday the highest since October 2014 due to increased rates in the international market.

Oil and Gas Regulatory Authority (OGRA) proposed a hike in the prices of several petroleum products which was approved by the government just before the start of the new month.

*According to the sources, the government has approved an increment of Rs 3.56 per litre in petrol prices and Rs 6.94 per litre *in* high-speed diesel (HSD) prices to keep up the trend of hike in crude oil prices in the global market.

Based on existing tax rates and import prices reported by Pakistan State Oil (PSO), the Oil and Gas Regulatory Authority (OGRA) on Tuesday worked out an increase of Rs6.94 per litre in the prices of HSD and Rs3.56 per litre in motor gasoline (petrol) for March. The regulator also recommended Rs6.28 and Re1 per litre increase in the prices of kerosene and LDO respectively.

Interestingly, next month’s prices have been worked out on the basis of higher-than-notified tax rates on the orders of the Ministry of Finance to enable the government to announce a relatively lower rate for political objectives.

In an order, the finance ministry has ordered calculation of prices on the basis of 31 per cent GST on high-speed diesel (HSD) and 17pc on all the other products. This is despite the fact that notified-GST rate on HSD at present is 25.5pc, 7.5pc on kerosene and light diesel oil (LDO) and 17pc on petrol.

In addition, the government is also charging Rs8 per litre petroleum levy on HSD, Rs10 per litre on petrol and Rs6 and Rs3 per litre on kerosene and LDO, respectively.